China’s renminbi has hit its strongest level in more than two years, fuelling expectations Beijing will move to arrest the appreciation in the currency prompted by the country's robust recovery from the coronavirus crisis.
The renminbi gained as much as 0.5 per cent to Rmb6.64 against the dollar in trade within mainland China on Wednesday, marking its highest level in relation to the buck since July 2018. The onshore exchange rate has gained 4.7 per cent this year, while the less-regulated offshore renminbi rate is up 4.9 per cent.
Strategists said the renminbi’s push past Rmb6.65 and the vigorous pace of its appreciation could foster unease among policymakers in Beijing. A stronger renminbi makes Chinese exports more expensive, something that could hold back the country’s economic recovery.